The Hindu Business Line : GSFC net sales rise 50% in first quarter

Gujarat State Fertilizers and Chemicals Ltd (GSFC) continued its progressive performance with its net sales increasing by 50 per cent in the first quarter of 2007-08, despite the machinery break down in Ammonia–IV plant which hindered the production of ammonia.

The net sales increased from Rs 449.17 crore in the first quarter of 2006-07 to Rs 674.50 crore during the current quarter, Mr P.K.Taneja, Managing Director, said after the board of directors approving the financial results for the quarter April-June 2007-08.

In the current quarter, there were 64 nil production days in Ammonia–IV plant on account of machinery breakdown in the plant. Most of the downstream plant operations were not affected as liquid ammonia supply could be maintained by purchasing ammonia from outside sources. Equipment have been repaired and the plant is put to operation with restricted load, he said.

The sale of fertilisers was 2.41 lakh tonnes which was higher by 53 per cent against 1.58 lakh tonnes .

EBIDTA was Rs 135.60 crore against Rs 111.19 crore. The interest cost has reduced by Rs 2.26 crore against Rs 19.82 crore. The profit before tax was Rs 81.80 crore against Rs 55.85 crore. The profit after tax was Rs 54.02 crore against Rs 50.06 crore.

The board of directors has also given in-principle approval to set up a sulphuric acid plant at a cost of Rs 40 crore. This will be a dedicated 250 MTPD plant at Sikka unit to meet its requirement. It also approved to set up a wind mill project for 10 MW at a cost of Rs 52 crores.

The urea phosphate fertiliser, used for drip irrigation, has been developed in-house and the Government has also approved production of this fertiliser by GSFC under FCO Rules.